bilateral distance, tariffs, and the quality of their exports. Under the assumption that trade costs are both ad valorem and per … unit, our model predicts that markups rise with distance and fall with tariffs, but these effects are heterogeneous and are …

within US states. After controlling for distance and country size, we estimate that relative to state-to-state trade …

determinants as the rest of exports and imports, distance-related trade costs play a more important role in explaining the volume … of bilateral trade flows resulting from vertical specialisation. Distance-related costs have a lower impact on foreign …

Distance effects in empirical gravity equations appear to be too high to be explained by transport costs alone … decreasing over the last six decades. To address the two dimensions of this 'distance puzzle', this paper proposes a model of … variable trade cost (distance) affects the number of exporters, which in turn affects the available information, the fixed cost …